Bankers Get IOUs Instead of Bonus Cash

By

Aaron Lucchetti and

Brett Philbin

Updated Jan. 16, 2013 8:14 a.m. ET

Several thousand Morgan Stanley traders, investment bankers and other employees will get IOUs instead of cash when bonus day arrives Thursday, a fundamental change in Wall Street pay triggered by the financial crisis.

The New York company will pay its bonuses in four equal installments, according to people briefed on the plan, with the first chunk coming in May and the last in January 2016. Employees who quit or are laid off before...